Source: Tax cuts on diesel avert major fuel price hike – herald
Africa Moyo-Deputy National Editor
GOVERNMENT has averted a major diesel price increase by temporarily removing all taxes on the fuel, effective today.
This decision is in response to rising global fuel prices caused by geopolitical tensions in the Middle East, which have disrupted oil markets and increased import costs for Zimbabwe and most countries.
Taxes suspended include Excise Duty, ZINARA Road Levy, Carbon Tax and the Strategic Reserve Levy.
Together, these taxes add up to US$0,54 per litre, a significant portion of the retail price of diesel, which would otherwise have risen to US$2,65 per litre.
Taxes on petrol remain unchanged.
In a statement last night, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, said: “This measure reflects Government’s commitment to protecting both consumers and productive sectors from external shocks, while safeguarding macro-economic stability.”
The removal of diesel taxes is expected to cushion businesses from rising operating costs, stabilise prices of basic goods and services, anchor inflation expectations, and support ongoing economic growth and recovery.
Prof Ncube said the Government is making a deliberate fiscal sacrifice to prioritise economic stability and citizens’ welfare over short-term revenue. “This measure underscores the Second Republic’s responsive and people-centred approach to economic management, as well as its commitment to ensuring that every Zimbabwean is cautioned against the impact of the current global economic headwinds,” said Prof Ncube.
He added that the Government will continue monitoring global developments and may take further action if necessary to ensure fuel availability and economic protection.
A notice of petroleum prices for April from the Zimbabwe Energy Regulatory Authority (ZERA) said the Government, through the regulator, continues to monitor the security of supply of petroleum products in the market.
In that regard, Government said there are enough stocks of petroleum products in the supply chain, starting from Beira and inland storage facilities with more than three months’ supply cover.
“Working with oil traders, the Government is opening up supply routes not affected by the current conflict in the Middle East.
“However, while Government ensures security of fuel supply, ZERA notices that the cost pressures are piling up and these require that prices be reviewed for two weeks to avoid fuel shortages and arbitrage,” reads the statement.
Zera said the Government is taking deliberate actions to ensure that fuel brought into the country is accessed by all fuel stations, especially those in the remote areas of the country, with Petrotrade and NOIC active in that regard.
“The new price of diesel has been set with a view to mitigate the impact of the increase to the mining, agriculture, haulage services and passenger transport sectors.
“Government has removed all taxes and levies on diesel. Government will endeavour to keep the price of diesel lower than what it ought to be. Without Government intervention, the price of diesel would have been US$2,65 per litre. As a way to open up other avenues for the importation of diesel, Government has, with immediate effect, approved the importation of diesel by road, in addition to pipeline and rail,” reads the statement.
The new diesel price is US$2,11 while the ZiG price is 53,60, with Blend is US$2,23 or ZiG 56,70.
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